We often get letters (well, emails) asking about the level of Merit Payments and TV Facility Fees for Premier League football clubs. Whilst we have published some data in the past, it’s not always easy to get a proper picture of how the system works.
We often get letters (well, emails) asking about the level of Merit Payments and TV Facility Fees for Premier League football clubs. Whilst we have published some data in the past, it’s not always easy to get a proper picture of how the system works. We were therefore very interested in a couple of articles published on the Pink Un website – no, not the Financial Times, but the local football paper for Norfolk and Norwich published by Archant Community Media Ltd.
The first article, Sky Sports cash bonus for Norwich City’s televised Premier League games, by David Cuffley, gives some insight into the sort of payments a club receives when they get featured as a live match on Sky Sports or ESPN. The article has data that each club is paid a facility fee of £485,000 per live TV match in the UK. Then, there are extras for internet, phone and delayed rights, and each club is guaranteed at least 10 live matches – or 10 payments – per season. However, Sky do get to call the shots on kick-off times therefore, and the article has a discussion on how that affects supporters, particularly for away games which for Norwich fans often involve some big distances.
In the comments section on the article, a pragmatic fan called ‘Graham Last’, says: “I sympathise with people when their arrangements are compromised by the TV companies but if we want their cash then we have to play by their rules.”
The second article, Every rung up the Premier League ladder means more money for Norwich City, by Michael Bailey, has some interesting information on the so-called Merit Payments clubs receive for their finishing position in the table. Here’s a selected paragraph:
“Of last season’s £1.2bn Premier League pot, half was shared equally between all top-flight clubs. The final quarter is given out in “facility fees” depending on the number of games broadcast live involving each club…. All 20 sides are guaranteed a minimum fee – which last season was £5.8m – for 10 live games, with clubs receiving a greater share the more they are on the television.”
The classic question for Norwich City FC supporters therefore was whether the club’s exit from the FA Cup just last week was such a bad thing. An FA Cup run brings its own financial rewards, but compared to Premiership survival, it can be considered quite small beer, viz:
“In 2010-11, the overall £1.2bn pot saw bottom club West Ham United walk away with little more than £750,000 – with every additional Premier League place worth the same again…. It meant Wolves, who scraped to safety in 17th, took in about £3m as part of their £40.6m top-flight cheque…”